Fed's Williams Says 2.5% Funds Rate About the `New Normal'
Yellen Says Gradual Rate Hikes Are Still Warranted
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Federal Reserve Bank of San Francisco President John Williams said he expects “gradual rate increases” over the next couple of years, with one possibly as early as December.
“The pace at which that happens and exactly the contour of that will depend on how the economy progresses,” Williams told reporters Friday in Zurich. “My own view is that 2.5 percent is about the new normal” for the Federal Funds rate.